Light on the Horizon: Following subdued M&A activity in 2023

M&As are notoriously complex. Recent significant changes in the corporate and legal landscape have only increased this complexity, highlighting the importance of good advice when businesses venture into the M&A domain.

 

David says that the mood for M&A deal-making in 2023 was subdued, and the outlook for 2024 is hard to predict. He is cautiously optimistic about an uptick in M&A activity amid the continuing economic and geopolitical uncertainty of this post-pandemic era.

 

However, significant shifts in the regulatory landscape continue to make even local deal-making tricky. David notes in particular that the period between agreeing to the terms of a transaction and closing the transaction is becoming increasingly extended as regulatory frameworks grow more complex.

 

David says long interim periods naturally increase the risks associated with transaction valuation and require a flexible approach to managing those risks through innovative but complex valuation mechanisms, price adjustments, and interim period protections.

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